Plans to develop Alexandria town centre hit a £300,000 stumbling block after a major gas main was discovered underneath the site.

The council sold Mitchell Way last year in a bid to transform the town with new shops and housing.

But it has now been revealed that the local authority have to fork out £300,000 to developers CCG Scotland and Kingsmead Developments after a number of “unforeseen” obstacles were uncovered.

These included a gas main, which the developer was not told about, as well as building two new substations and strengthening a retaining wall.

As a result, the main, which would pose a “health and safety risk”, will need to be re-routed at a cost of £182,215.

According to West Dunbartonshire Council, the developers say their investment is no longer viable and are asking the local authority to stump up the cash.

The council revealed the “disappointing” update in a report to councillors on the infrastructure regeneration and economic development committee where members agreed to stump up the cash.

It reads: “The developers commissioned topographical and intrusive surveys and the results from these together with other unforeseen issues resulting from the detailed design have resulted in a significant increase in the overall cost of the development.

“The impact of these increased overall costs on the appraisal is that the development is no longer viable at the proposed purchase price for the site.

“In fact, the appraisal shows a deficit of £282,000 exclusive of VAT at that price.”

The Lennox Herald reported last year that councillors chose CCG Scotland and Kingsmead Developments to develop Mitchell Way — which is earmarked for a major overhaul.

An offer of around £630,000 was put forward to purchase the site.

A Lidl is planned for the development, as well as a three-storey housing development and nine retail units.

Terms in principle have been agreed with Caledonia Housing Association for 26 one and two-bedroom flats which will be constructed above the proposed new retail units.

It is intended that Caledonia will buy these flats from the developer then let to tenants.

Council chiefs considered whether it would be better for the local authority to take on the project directly, as result of the increased costs.

But they concluded that doing so would be “impracticable”.

Speaking at the meeting Labour leader Martin Rooney said the most important issue was that the development would still be going ahead.

He said: “We were getting a capital receipt of £628,000 but that’s not going to materialise.

“For me, the most important thing is that the development goes ahead. A lot of time and effort have been put in from the previous Labour administration and hopefully there will be a lot of effort from this SNP administration to get this development done.”